The short answer to this question is “yes,” you can. HOWEVER, I have never done it, and I never will do it. I know people who do, but I just simply won’t do it. Here’s why. Remember, you met these people because they are in foreclosure. They are in foreclosure because they stopped making their payments to the bank. If they aren’t going to pay the big and bad bank, what makes you think they’re going to pay little ‘ol you? Even if they really and truly want to pay you, and they fully intent on paying you, they simply just may not be ABLE to pay you. And now what? Do you kick them out? Do you evict them? How does it look with the judge when you’re trying to evict them? You tell the judge the story and sure, you have the deed, and you did everything honestly and by the book, however the PERCEPTION is that you’re trying to kick them out of THEIR house! And who is the bad person, the homeowner who is just trying to survive with his wife and kids? Or is the bad guy the investor who is trying to make a $30,000 paycheck on the deal? I can tell you right now, your odds of being looked at as the good guy are slim. You want to do everything possible to avoid a lawsuit. Doing a straight deal where the homeowner moves is your best way to avoid a lawsuit.
Of course no matter which way you go, consult your attorney before you do it. Make sure you’re doing everything possible to protect yourself.
